Am I entitled to be paid notice at full pay even though I’ve only been receiving 80% furlough pay?

Last updated: 10 Aug 2020

Yes, the notice pay should be based on your actual pay and disregard any reduced payments while on furlough.

New regulations came into force on 31 July 2020 and confirm that an employer must not take account of the reduced furlough pay when calculating pay for the statutory notice period. The new regulations are complex, but basically mean that the pre-furlough pay rate must be applied.

If you have normal working hours your notice pay should be calculated on your usual rate of pay and you should be paid at 100%, even if your pay reduced to 80% under a furlough arrangement.

If you did not have normal hours of work and your pay varied, the rule was always that the payment is calculated on an average of the previous twelve weeks’ pay. The new Regulations make it clear the employer must calculate notice pay on the pre-furlough pay (effectively taking the figure that was used to calculate the reference salary for the job retention scheme, but without the cap).

These Regulations only apply to the period of notice due under statute, which is one week per year of employment up to a maximum of twelve weeks. If you are entitled to enhanced contractual notice the position may be different. If your employer is intending to pay anything less than full pay for the notice period contact the union for individual advice.

This page is designed to give general information about members’ rights on returning to work. It does not cover all circumstances and should not be treated as a definitive answer. Members should contact Prospect either through the Member Contact Centre on 0300 600 1878 or contact their union rep or full-time officer for specific advice.